BUSINESS WITH PERSONALITY ART OF THE DEAL VIVA LA VEGAN WE TRY IS TRUMP THE THE CITY’S PLANT-BASED MAN TO RENEW JUNK FOOD HOT SPOTS P22 IRAN TALKS? P17 WEDNESDAY 15 JANUARY 2020 ISSUE 3,534 CITYAM.COM FREE Blackrock to go green in new strategy ANNA MENIN @annafmenin THE WORLD’s largest asset manager Blackrock yesterday said it will put environmental sustainability at the core of its investment strategy. The asset management titan announced the sweeping overhaul in a bid to position BRITISH STARTUPS BREAK RECORDS IN 2019 AS FUNDING itself as a sustainable investment leader, pledging to take steps such as lowering its GROWS FASTER THAN ANYWHERE ELSE IN THE WORLD exposure to fossil fuel companies. Chief executive Larry Fink announced the changes in a letter to clients yesterday, in which he said climate change posed an unprecedented risk. “Even if only a fraction of the projected impacts is realised, this is a much more structural, long-term crisis,” Fink said. “Companies, investors, and governments must prepare EMILYTECH NICOLLE Data from Tech Nation and DealroomONThe top performing sectors TOPof 2019 Health and Trainline. for a significant reallocation today revealed the UK garnered a third of were fintech, artificial intelligence and The largest round in UK history also of capital,” he added. @emilyjnicolle Europe’s £30.4bn total. It received more clean energy. Fintech continues to be the occurred last year when fintech lender Fink said Blackrock — INVESTMENT into the UK’s burgeoning funding than Germany and France UK’s standout star, more than doubling Greensill raised $800m from Softbank, which manages $7 trillion tech scene grew more than anywhere combined, which came in second and its 2018 total to reach $5.4bn last year — alongside mega-rounds from Deliveroo, (£5.4 trillion) in assets — else in the world last year, leaving third place at £5.4bn and £3.4bn. three times more than in Germany, and Oaknorth, and CMR Surgical. would now assess previous records in the dust as investors London now stands shoulder-to- 7.5 times more than in France. “Last year was a very good year for environmental, social and set their sights on private markets. shoulder with San Francisco, Beijing and “These numbers clearly show that if you tech,” Frederic Court, founder of Peloton governance (ESG) with the Venture capital funding for UK tech New York as one the top cities in the want to invest in a high potential investor Felix Capital, told City A.M. “same rigour that it analyses firms reached £10.1bn in 2019, rising 44 world for venture capital investment. technology business, then you need look “It will continue to do very well in terms traditional measures such as per cent year on year and breaking the It also far surpasses the rest of Europe in no further than the UK,” said Cindy Rose, of usage and opportunity. But the harder credit and liquidity risk”. all-time high set two years earlier. terms of the number of accelerator the British chief executive of Microsoft. thing with tech, especially for those at “I believe we are on the edge Britain surpassed growth in all other programmes for startups, and the Eight unicorns were created in London later stages, is getting the valuation right. of a fundamental reshaping of countries, including in the US and China number of so-called unicorns — last year, taking its total to 77. These Many of these companies will succeed, finance,” he said. where investment fell 20 per cent and 65 companies valued at more than $1bn included fintech startups Sumup and but the tricky question for investors is per cent respectively. (£767.6m) — headquartered in the city. Checkout, as well as Ovo Energy, Babylon what they will be worth eventually.” £ CONTINUES ON P2 Cleared for takeoff: Government strikes deal to keep troubled Flybe in the air HARRY ROBERTSON pledged to inject “additional The agreement has already the “the taxpayer to pick up the carbon-intensive kind of travel”. funding” to keep the airline proved controversial, however, tab” for the “mismanagement” of Chancellor Sajid Javid justified @harrygrobertson running. They said this would with rivals criticising government the airline. the Flybe deal by highlighting the FLYBE staved off collapse last night come “alongside government intervention to save a failing The government said that air benefit it would provide for after shareholders and the initiatives”. business and environmental passenger duty would be reviewed regional connections in Britain. government struck a controversial The deal came a day after reports groups slamming the review of air for the whole market ahead of the “I welcome Flybe’s confirmation deal that will review the regional emerged that Flybe was in a passenger duty. March Budget, to the chagrin of that they will continue to operate airline’s air passenger duty perilous situation and facing an Willie Walsh, chief executive of climate campaigners. as normal, safeguarding jobs in UK contributions. imminent collapse that could have British Airways owner IAG, called Greenpeace chief scientist Doug and ensuring flights continue to Major shareholders, including cost 2,000 jobs ahead of the quiet it a “blatant misuse of public Parr said it was hypocritical of the serve communities across the Virgin Atlantic and Stobart Group, winter period. funds”. He said it was not right for government to subsidise “the most whole of the UK,” he said. FTSE 100 ▲ 7,622.35 +4.75 FTSE 250 ▲ 21,756.05 +39.29 DOW ▲ 28,939.67 +32.62 NASDAQ ▼ 9,251.33 -22.60 £/$ ▲ 1.302 +0.003 £/€ ▲ 1.167 +0.004 €/$ ▼ 1.113 -0.001 02 NEWS WEDNESDAY 15 JANUARY 2020 CITYAM.COM TO BUY, OR NOT TO BUY? Shakespeare’s first folio put on display in London ahead of garnering up to $6m at Christie’s NYC auction THE CITY VIEW Fink is right to hail the great reallocation HEN you manage over $7 trillion your investment decisions don’t just move markets, they shape them. WBlackrock’s Larry Fink understands this and his annual letter to CEOs tends to set out his big-picture thoughts on what companies and boards ought to be thinking about — and what they ought to be doing. His 2018 letter focused on the need for genuine shareholder engagement, and he vowed that Blackrock would be “active, engaged agents on behalf of clients... embracing our responsibility to help drive... change”. The following year, Fink wrote about “an inextricable link” between profit and purpose, and told bosses they had a responsibility to deal with social problems “in an increasingly divided world”. This year’s missive A RARE collection of William Shakespeare’s first plays, published in 1623, is to be put on display at Christie’s in London until it brings the two previous themes together, as he confronts head heads to auction in April at its New York house. The folio, which contains 36 of Shakespeare’s well-known plays and 18 that on the implications of climate change. Describing it as an might otherwise have been lost, is expected to sell for between $4m (£3.1m) and $6m when it goes under the hammer. “unprecedented risk to markets” he insisted that “companies, investors and governments must prepare for a significant reallocation of capital”. Blackrock will now assess environmental considerations with “the same rigour is analyses traditional measures such as credit and liquidity risk”. The world’s largest asset manager will also move investment away Blackrock to remove coal from companies that derive more than 25 per cent of their revenues from thermal coal and aims to increase investment in sustainable assets from $90bn to £1 trillion in a decade. Critics are already claiming that Fink’s commitments don’t go from its active portfolios far enough (or that they come too late) but while that argument will rage for decades, a fundamental point is worth celebrating today: this is how markets are supposed to work. As Mark Carney CONTINUED FROM FRONT efforts to tackle climate change or face the controversial holdings and carbon said last summer, capitalism will be part of the answer to increasing anger from investors. footprints of its mutual funds by the dealing with climate change. The outgoing Bank of England As part of its new investment strategy, “Every government, company, and end of the year. governor said the system of free-market capital allocation “is Blackrock said it will cut companies shareholder must confront climate Jeanne Martin of investment charity that derive a quarter or more of their change,” he said. Share Action called the decision to very much part of the solution” and added, for good measure, revenue from thermal coal from its Fink said Blackrock would vote to quit coal “yet another significant blow that “there will be great fortunes to be made” by companies actively managed portfolios, as well as remove directors of companies it to the already dying market”, but who “move capital from where it is today to where it needs to be doubling the number of sustainabili- judged to have taken insufficient called on Blackrock to “use its voting tomorrow”. The City understands this and London is ty-focused exchange traded funds it action. rights to get major coal financiers to offers to 150. “We will be increasingly disposed to do the same”. exceptionally well-positioned to lead on what Fink yesterday The firm is also aiming to increase vote against management and board Martin welcomed Blackrock’s com- described as a “fundamental reshaping of finance”. This its sustainable assets tenfold within a directors when companies are not mitment to greater transparency, but newspaper has long supported the principles Blackrock now decade, from $90bn to $1 trillion.